RE:RE:Its a hustle This is certainly an option.
However, de Alba has always stated consistently Frontera/CGX preferred path forward is to bring in a JV partner.
Furthermore, the terms of such a strategic venture arrangement must take into account the massive de-risking that has taken place across the Northern Corentyne area. With Apache's Maka only being 7 miles apart from the Northern Corentyne Area and Pluma only 2 miles - it would be hard to argue that the both fan complexes in Northern Corentyne have been substantially de-risked.
So, what would a deal look like in order to satisfy the expectations of de Alba? Look to the recent deal between Apache and Total - short summary:
1. Capital injection of +$100M
2. 2% sliding scale royalty based on oil prices
3. Full appraisal and development carry of first development (gross $5B)
4. Reimbursement of prior costs incurred on the block which is probably close to $200M gross.
For a big E&P, this would be exciting terms to access some of industries lowest breakevens. All it would be is a financing exercise.
If de Alba can't get favorable terms - they have made it clear they will move forward drilling the wells on their own. Hence, the reason they have budgeted $90 to $45M for the Kawa well. In turn, would negotiate after well results - with data in hand.
De Alba playing this the right way. Clearly with Chevron, Total and Qatar Petroleum offering the most favorable terms to secure the shallow water licenses directly adjacent to CGX's Corentyne license offshore Suriname just last week demonstrates there is very strong interest in the area. Note, there were more than 10 bidders that competed in the open tender process.
De Alba will want a premium for his equity investment in CGX. Given the location of these assets and world class discoveries just miles from the Corentyne License - I think his odds are favorable.
He doesn't see millions of dollars in with his investment in Guyana - he has line of sight to billions.
GLTA